Benefits of factoring for your company
Financial flexibility for your success
The key focus of factoring is fast access to liquidity, regardless of company size or industry. With Intermarket Bank’s factoring services, companies can gain significant liquidity, risk protection, and the potential for healthy expansion.
Factoring is economically beneficial for companies of all sizes, but particularly for those with annual revenue of EUR 2 million or above.
Financial benefits for companies
More liquidity
Converting receivables into cash generates liquidity, which supports the company´s growth. Factoring does not draw on your existing bank lines of credit, making it an effective supplement or alternative to existing bank facilities. We record the purchase of the receivables exclusively to your customers.
Revenue-based financing
As your sales increase or decrease, your financing adjusts accordingly. This effectively balances out seasonal fluctuations
Revenue-driven financing
During periods of strong growth or when expanding your business operations, your company needs liquidity as your accounts receivable grow rapidly. It is exactly during these times that you benefit most from having access to additional cash reserves.
Improved security
As your receivables are purchased on a non-recourse basis, the risk of default by debtors is transferred to Intermarket. Intermarket can also integrate an existing trade credit insurance policy or insure your debtors through an Intermarket insurance policy.
Capturing early payment discounts
With cash no longer tied up in receivables, you can take advantage of early payment discounts when paying suppliers. The benefit remains with your company and is reflected in your income statement.
Potential reduction in total assets and rating improvement
Factoring can improve key balance sheet metrics (particularly equity) and strengthen your credit rating due to a changed balance sheet profile. At the same time, working capital needs are optimised.
Financial benefits for your company
Revenue-driven financing
Your financing adjusts automatically to the development of your business activities.
- Reliable access to financing as revenue grows
- Optimal adjustment of financing to seasonal fluctuations
- No overall financing limits
Improved equity ratio
By removing receivables from your balance sheet, factoring can help improve your balance sheet structure.
- It might shorten your balance sheet
- Potential improvement of factors relevant to banks’ rating guidelines
Improved Position for Bank Ratings
Potentially improved position for your company’s credit rating:
- Immediate strengthening of liquidity through instant financing
- Optimal adjustment of financing to seasonal fluctuations
- Possible improvement in financial indicators used for credit ratings
Flexibly scalable: Factoring for companies of all sizes
Factoring is particularly valuable for companies in the service, retail, and manufacturing sectors. Given their typically extensive portfolio of receivables from commercial customers, this form of financing is particularly well-suited and effective for these industries.
For industries like construction or project business or for companies primarily operating in the B2C sector, factoring might not be the best choice.
Suitable target groups:
- Companies with high accounts receivable and/or increasing accounts payable
- Expanding companies with dynamic revenue growth and/or seasonal fluctuations
- Companies supplying goods or services on open accounts with longer payment terms
- Startups and scaleups with prospects for expansion
- Companies tapping into new sales markets in different industries or foreign markets